Adani Group's Ambitious Capital Expenditure Plans for 2025-26
Key Ideas
- Adani Enterprises aims for a capital expenditure exceeding ₹36000 crore in FY 2025-26, with a notable portion allocated for airports, green hydrogen, roads, and solar PVC.
- Significant investments to be made in airport business, with plans to upgrade Mumbai airport's T1 terminal and operationalize Navi Mumbai airport after stabilization.
- Company's focus on stabilizing operations at Navi Mumbai airport before commencing the demolition of T1 terminal, expecting a surge in passenger demand in Mumbai.
- Anticipated development of Navi Mumbai airport's Phase-2 to triple its passenger capacity from 20 million to 60 million, showcasing the company's growth strategy.
Adani Enterprises Ltd, the flagship company of Adani Group, has set an ambitious capital expenditure target of over ₹36000 crore for the financial year 2025-26. The company's Chief Financial Officer, Jugeshinder Singh, mentioned during an earnings call that a notable 29% of this expenditure will be directed towards the airports business. Apart from airports, significant investments are also planned for key areas such as the green hydrogen ecosystem, roads, and solar PVC.
Specifically, Adani Enterprises plans to allocate ₹10500 crore for the airports business, ₹9000 crore for PVC, ₹6200 crore for roads, and ₹5500 crore for the green hydrogen ecosystem. The company disclosed its intentions to enhance the T1 terminal at Mumbai airport and commence operations at Navi Mumbai airport, ensuring a smooth transition without rushing the process.
The company's strategy includes focusing on stabilizing operations at Navi Mumbai airport before beginning the demolition of T1 terminal. Adani Group foresees a significant rise in passenger demand in Mumbai and anticipates a capacity increase from 20 million to 60 million passengers at Navi Mumbai airport through Phase-2 development.
With an EBITA of around ₹4000 crore for the airports business, Adani Enterprises holds a considerable share in Mumbai International Airport Ltd (MIAL) and other airports under Adani Airports Holdings Ltd. Under AAHL, the company manages seven airports that served 94.4 million passengers in FY 25, reflecting a growth of seven percent year-on-year. The company is strategically positioned to capitalize on the growth opportunities in the aviation and infrastructure sectors.